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Paxos launches new start up to expand access to on-chain markets

Paxos

Jun 18, 2025

Paxos Labs empowers platforms to launch and manage on-chain financial products directly within existing customer experiences.

NEW YORK, NY – Paxos Labs, a new start-up whose mission is to make on-chain products and DeFi markets more accessible, is announcing its launch today. Paxos Labs enables partners to bring trusted financial products to market and manage them at scale with integrated risk management, liquidity optimization and seamless distribution. Incubated within Paxos, Paxos Labs will now operate independently, while drawing on Paxos’ regulatory expertise, enterprise-grade infrastructure and deep experience building safe and compliant financial systems.

Paxos Labs empowers partners to seamlessly embed trusted DeFi and on-chain financial products into their existing user experiences — enabling the creation of custom-branded stablecoins, yield-generating products and structured digital assets tailored to specific compliance, brand and risk requirements. These embedded products can be built on a wide range of tokenized assets, including those issued by regulated RWA providers, offering partners maximum flexibility and composability.

Paxos Labs extends Paxos’ mission to replatform the financial system by building trusted infrastructure for the next generation of financial products. While Paxos enables partners of all sizes with regulated tokenization and utility infrastructure, Paxos Labs is focused on developing use cases for platforms to launch embedded on-chain products.

“Paxos Labs is a natural expansion of our ecosystem,” said Charles Cascarilla, CEO and Co-Founder of Paxos. “We can serve a broader set of builders, institutions and use cases with the trustworthy, enterprise-grade infrastructure these customers need and have come to expect”. 

Whether these platforms are just beginning their on-chain journey or looking to enter more complex use cases, Paxos Labs aims to become a valued partner at every point along the way. Through Paxos Labs, partners can issue custom-branded stablecoins backed by high-quality tokenized assets such as Paxos-issued Global Dollar (USDG); deploy DeFi yield strategies through programmable vaults; and access end-to-end APIs for collateral management, programmatic yield distribution and reporting. The platform’s flexible architecture supports integration with a wide range of regulated RWA issuers, empowering partners to build trusted products aligned with their compliance, branding and yield objectives.

“The complexity of on-chain financial markets is still a major barrier for many institutions and platforms,” said Bhau Kotecha, Co-Founder and Head of Paxos Labs. “We’re building the infrastructure to remove that complexity—so our partners can focus on launching innovative, trusted products directly within their platforms.”

About Paxos Labs

Paxos Labs is building the infrastructure that enables institutions and developers to build, launch and scale trusted on-chain financial products. Its platform provides tools for issuing branded stablecoins, deploying tokenized yield strategies and managing structured digital assets. As an independent spin-off incubated by Paxos, Paxos Labs combines the agility of a DeFi-native team with the credibility and infrastructure heritage of one of the industry’s most trusted blockchain providers. Its mission is to make decentralized finance programmable, scalable and safe for institutions and their users — powering a more open, interoperable financial system.

About Paxos

Paxos is the leading regulated blockchain infrastructure and tokenization platform. Its products are the foundation for a new, open financial system that can operate faster and more efficiently. Today, trillions of dollars are locked in inefficient, outdated financial plumbing that is inaccessible to millions of people. Paxos is replatforming the financial system to enable assets to instantaneously move anywhere in the world, at any time, in a trustworthy way.

Paxos partners with leading global enterprises to tokenize, custody and trade assets. Its blockchain solutions are used by leaders like PayPal, Interactive Brokers, Mastercard, Mercado Libre and Nubank. Paxos is licensed to engage in virtual currency business activity by the NYDFS and is the issuer of numerous regulated digital assets including PayPal USD (PYUSD), Pax Dollar (USDP) and Pax Gold (PAXG). Its affiliate company Paxos International issues the yield-bearing regulated stablecoin Lift Dollar (USDL). Paxos Singapore is the issuer of Global Dollar (USDG), a USD-backed stablecoin that powers Global Dollar Network and is compliant with the MAS upcoming stablecoin framework. USDG is also available on Solana. Prudentially regulated by the NYDFS in the US, the MAS in Singapore and FSRA in Abu Dhabi Global Market, Paxos is a top-funded fintech company with more than $540 million raised from leading investors including Oak HC/FT, Declaration Partners, Founders Fund, Mithril Capital and PayPal Ventures.